In US unemployment was after effect of housing crash not the cause.
regarding 40% crash, I have got no clues by what % our market may crash and by when, I just think with current valuation, risk/reward doesn't favour property investment.
Quite a significant no of investors with income less than 90k are taking hit(losses) with the hope that capital gain will save them, now even if we have a very moderate fall in next few years, can these speculators sustain?
Also remember Migrant increase is politically not very popular plus we have an ageing headwinds just ahead of us.
ps: There have been several cases in US where poeple had gathered multi million $ property portfolios just by pryamidding one property with other, In the crash which followed just a 20% fall was enough to completle wipeout many of those. This is the power of over-leverage.
Also investment property can also have margin calls, there is an insurance fineprint which pressures the bank to ask for extra amount of funding from investor in case property goes under the market valuation.
